Study how F1 brought in RM950mil, say experts

Malaysia must conduct a comprehensive study to evaluate the economic impact of the recent F1 Bahrain Grand Prix in Sepang before making it a regular event, according to experts. Yeah Kim Leng, an economist from Sunway University, emphasized the importance of determining how much of the RM950 million in economic activity generated by the race was contributed by foreign visitors.

Hafiz Hanafiah, a tourism management lecturer at Universiti Teknologi Mara, compared the Malaysian economy to a bathtub, explaining that foreign visitors' spending is crucial in raising the water level, just as pouring more water into the bathtub increases its content. The recent F1 event attracted 261,000 spectators and 50,000 foreign visitors, with the government considering hosting the races every few years in partnership with another country.

However, Hafiz suggested that each event should generate at least RM300 million in additional revenue from foreign tourists to justify the effort. The hosting fee of RM950 million was paid by Bahrain, allowing Malaysia to benefit from tourism spending without any upfront financial outlay. Experts also suggested bringing in private businesses to sponsor the event and extending the duration of F1-related events to encourage tourists to stay longer.

Nevertheless, Yeah cautioned that the government should first assess whether the funds used for hosting the race could be better allocated to address more immediate economic priorities such as schools and hospitals.